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Marketing Chapter is the process of planning and executing the conception, pricing, promotion,
and distribution of ideas, goods, and services to create exchanges that satisfy the individual and
organizational objectives. OR a social, economic and managerial process by which individuals
and groups obtain what they need and want through creating and exchanging products and
values with others. (Exchange is the clue concept!)
What is marketing? Is A Philosophy (that stresses customer satisfaction), An Attitude,
A Perspective, A Management Orientation. Plus A Set of Activities, the 4Ps, including: Products,
Pricing, Promotion, and Distribution (place).
Exchange is the idea that people give up something to receive something they would
rather have. The Necessary Conditions for Exchange are: At Least Two Parties, Something of
Value, Communication and Delivery, Freedom to accept or Reject, Desire to Deal with Other
Party.
The four marketing management philosophies are: Production (internal capabilities of
the firm), Sales (PROMOTION (often through price) and aggressive sales techniques and
believe that high sales result in high profits), Market (Satisfying customer needs and wants while
meeting objectives (WalMart)), Societal (Satisfying customer needs and wants while enhancing
individual and societal well-being)
The Marketing Concept is the idea that the social and economic justification for an
organizations existence is the satisfaction of customer wants and needs while meeting
organizational objectives
To achieve a Market Orientation you need to: Obtain information about customers,
competitors, and markets, Examine the information from a total business perspective, Determine
how to deliver superior customer value (ratio of benefits to sacrifice), Implement actions to
provide
value
to customers, Establish and maintain mutually rewarding relationships with customers
Relationship Marketing is the name of a strategy that entails forging long-term
partnerships with customers, both individuals and firms. Is a strategy that focuses on keeping
and
improving
relationships with current customers.
In order to build Building Long-Term Relationships a company should understand:
Customer-oriented personnel, Effective employee training programs, Empowered employees,
Teamwork, The employee is the firm.
Long-term success is best supported by a Market Orientation
Chapter 2
Strategic Planning is the managerial process of creating and maintaining a fit between the
organizations objectives and resources and evolving market opportunities. The goal is long-
term profitability and growth. Strategic planning requires long-term commitments of
resources. Management commitment.
Planning is the process of anticipating future events and determining strategies to achieve
organizational objectives in the future.
A Marketing Plan is a written document that acts as a guidebook of marketing activities
for the marketing manager.
An appropriate business mission statement has the Brand Essence is also called the
brands mission statement. A phrase or statement for internal use, to guide brand
practices. 25 words or less, easy read, easy to remember.
Strategic Business Unit (SBU) is a popular technique used by large organizations as a
management tool.
Marketing Objective is a statement of what is to be accomplished through marketing
activities. It must be: Realistic, Measurable, Time specific, Consistent with and indicate the
organizations priorities.
SWOT Analysis
Identifying internal STRENGTHS (S)
internal WEAKNESSES (W)
external OPPORTUNITIES (O)
external THREATS (T)
Competitive Advantage is the set of unique features of a company and its products that
are perceived by the target market as significant and superior to the competition. A Unique
aspect of a firms offering, or the firm itself (image/brand), that causes target customers to
patronize the firm rather than the competition.
Cost Competitive Advantage EXAMPLE: Being the low-cost competitor in an industry
while maintaining satisfactory profit margins. COST ADVANTAGE IS HARD TO BEAT.
Examples of product/service differentiation: Brand names, Strong dealer network,
Product reliability, Image, Service.
Niche Competitive Advantage is an Advantage achieved when a firm seeks to target and
effectively serves a small segment of the market. May not last very long!
Market Penetration is the cheapest.
Marketing Strategy is the activities of selecting and describing one or more target
markets and developing and maintaining a market mix that will produce mutually
satisfying exchanges with markets.
Marketing target Mix is a unique blend of product, distribution, promotion, and pricing
strategies designed to produce mutually satisfying exchanges with a target market.
Product strategies: The Most IMPORTANT, the starting point of the 4 Ps. Goods ,
Services and ideas.
Place (distribution) strategies: Location. Product availability means where and when
customers want them.
Promotion strategies: Role is to bring about exchanges with target markets by: Informing,
Educating, Persuading, Reminding, Includes integration of personal selling, advertising, sales
promotion, and public relations.
Price strategies: The most FLEXIBLE of the 4 Ps-- quickest to change, Competitive
weapon, Price x Units Sold = Total Revenue, Quickest and easiest to change
Chapter 3
Ethics is the moral principles or values that generally govern the conduct of an
individual.
Morals are the rules people develop as a result of cultural values and norms.
Cause-Related Marketing is the cooperative efforts of a for-profit firm and a
nonprofit organization for mutual benefit.
Chapter 4
Target Market is a defined group most likely to buy a firms product.
Social Factors: Attitudes, Values, and Lifestyle. The most difficult external variable for
marketing managers to forecast or influence are social factors.
The phenomenon of working women has had the greatest effect on marketing than
any other social change. Traditional Households are ONLY 25% of households today.
Demography is the study of peoples vital statistics, such as their age, race and ethnicity,
and location.
Generation Y: Born between 1979 & 1994, children of boomers, Called the young &
restless (impatient) generation. 26% of population growing to 33% by 2015. Time
managers, Street Smart, Diverse, Opinionated
Generation X: Savvy and cynical, skeptical consumers.
Growing Spending Power of Ethnic Markets 08: U.S. Hispanics ( fastest growing in
numbers, $1 Trillion), Very brand loyal. African-Americans ($921 Billion) TV, Radio, media
spending and choices increasing, Asian-Americans ( highest income levels, $526 Billion), Very
Diverse creating marketing challenges.
Rising Incomes: Median U.S. household income in 2008 was $49,000, Education is the
primary determinant of earning potential, Incomes rising slower and consumers strapped
for cash, Middle-class income is between $45,000 and $74,999
Inflation: Prices rise with no wage increase Purchasing power decreases, A general rise
in prices without an equal or corresponding increase in wages.
Basic and applied research:
Federal legislation: Regulate pricing practices Robinson-Patman Act
Chapter 6
Consumer Behavior processes a consumer uses to make purchase decisions, as well as to
use and dispose of purchased goods or services; also includes factors that influence purchase
decisions and the product use. =HOW consumers make purchase decisions and consumers use
and
dispose of product.
Consumer Decision-Making Process is a five-step process used by consumers when
buying goods or services. Consumers may skip steps and can stop at any time without
purchase
The most difficult external variable for marketing managers to forecast or influence
is social factors
Need Recognition: Result of an imbalance between actual and desired states. A need is
something an individual depends on to function efficiently
Internal Stimulus: Need or want
External stimulus: Advertising promotion
Stimulus: Any unit of input affecting one or more of the five senses: sight, smell, taste,
touch and hearing
Want: Recognition of an unfulfilled need and a product (or attribute or feature) that will
satisfy it. Often brand specific
Evoked Set (consideration set): Group of brands, resulting from an information search,
from which a buyer can choose (consumers preferred alternatives)
Cognitive Dissonance Inner tension that a consumer experiences after recognizing an
inconsistency between behavior and values or opinions (also called buyers remorse).
Social class would indicate advertising medium and product distribution
The most difficult external variable for marketing managers to forecast or influence
is social factors
Exposure to over 3,000 advertisement messages per day Notices only 11 to 20 ads
Maslows Hierarchy of Needs
Types of Learning: Experimental an experience that changes behavior, Conceptual Not
learned through direct experience (like studying for a test)
Belief: An organized pattern of knowledge that an individual holds as true about his or
her world.
Attitude: A learned tendency to respond consistently toward a given object